Dividend investors would be wise to focus not just on a stock's current yield, but also on the long-term growth potential of its dividends. That's because strong businesses that consistently raise their dividend payouts reward shareholders with a steadily rising income stream that essentially equates to a raise every year. And well, who doesn't like a raise?
But there are other reasons to value dividend growth so highly, and they're well supported by research. For instance, a study by C. Thomas Howard published in Advisor Perspectives found that for every percentage point a stock's yield rises, its annual return increases by 0.22 percentage points if it's a large cap, 0.25 if it's a midcap, and 0.46 if it's a small cap. Even better, Howard found that dividend-growing stocks outperformed dividend cutters by 10 percentage points per year from 1973 to 2010 and beat both flat- and no-dividend stocks. And the icing on the cake is that Howard showed that this outperformance came with a third less volatility. Higher returns, less volatility-induced stress, and a steadily growing income stream -- what's not to love?
10 Best Biotech Stocks To Own Right Now: China Metro-Rural Holdings Limited(CNR)
China Metro-Rural Holdings Limited, through its subsidiaries, primarily engages in the development and operation of agricultural logistics and trade centers in northeast China. It also involves in purchasing, processing, assembling, merchandising, and distributing pearls and jewelry products. The company markets its pearls and jewelry products to wholesale distributors and mass merchandisers in Europe, the United States, Hong Kong, and other parts of Asia. In addition, it develops, sells, and leases residential and commercial properties in Hong Kong and the People?s Republic of China. The company is based in Tsimshatsui, Hong Kong.
Advisors' Opinion:- [By Katie Brennan]
Canadian National Railway Co. (CNR) added 0.9 percent to C$104.93 and Canadian Pacific Railway Ltd. rose 1.7 percent to C$131.73.
Niko Resources surged 3.4 percent to $8.64 after the company entered an agreement for a $60 million loan that will be funded by a group of institutional investors. Net proceeds from the loan will be used to fund working capital requirements.
Hot Small Cap Companies To Own In Right Now: OmniVision Technologies Inc.(OVTI)
OmniVision Technologies, Inc. designs, develops, and markets semiconductor image-sensor devices. The company offers CameraChip image sensors, which are single-chip solutions that integrate various functions, such as image capture, image processing, color processing, signal conversion, and output of a processed image or video stream for use in various consumer and commercial mass-market applications; and CameraCube imaging devices that are image sensors with integrated wafer-level optics. It also provides companion chips used to connect its image sensors to various interfaces, including the universal serial bus and other industry standard interfaces; and companion digital signal processors that perform compression in standardized still photo and digital video formats. In addition, the company designs and develops software drivers for Linux, Mac OS, and Microsoft Windows, as well as for embedded operating systems, such as Blackberry OS, Palm OS, Symbian, Windows CE, Windows Embedded, and Windows Mobile. Its products are used in mobile phones, notebooks, Webcams, digital still and video cameras, commercial and security and surveillance, and automotive and medical applications, as well as in entertainment devices. The company sells its products directly to original equipment manufacturers and value added resellers, as well as indirectly through distributors worldwide. OmniVision Technologies, Inc. was founded in 1995 and is based in Santa Clara, California.
Advisors' Opinion:- [By Rick Munarriz]
Briefly in the news
OmniVision (NASDAQ: OVTI ) investors are seeing the big picture. Shares of the image sensor maker moved higher after posting better-than-expected quarterly results. Revenue soared 54%, and OmniVision's profit of $0.31 a share blew away the $0.21 analysts were targeting. Nokia (NYSE: NOK ) is no longer the leading smartphone seller in Finland. Tech tracker IDC reports that Samsung outsold Nokia in its home country this past quarter. So much for the hometown hero. Vringo (NASDAQ: VRNG ) got another tech giant to pay up, but it won't be much. The company announced a patent-infringement settlement with Mr. Softy in which Vringo will receive $1 million and enter into a licensing deal with the world's largest software company.
And now let's take a quick look at some of the other stories that shaped our week. - [By Anders Bylund]
Shares of OmniVision Technologies (NASDAQ: OVTI ) jumped as much as 23% overnight, driven by a rock-solid fourth quarter report. The stock set a fresh 52-week high, but remains far below the $36 high-water mark that was set in 2011 when OmniVision's back side illumination, or BSI, camera chips seemed set to rule the smartphone world.
- [By Paul Ausick]
Stocks on the move: Apache Corp. (NYSE: APA) is up 8.9% at $85.66 after a $3.1 billion asset sale to Sinopec. OmniVision Technologies Inc. (NASDAQ: OVTI) is down 16.1% at $15.45 after warning on earnings due to lower sales of smartphones. E-Commerce China Dangdang Inc. (NYSE: DANG) is down 10.1% at $7.80 on a downgrade from JPMorgan.
- [By rusticnomad]
Omnivision Technologies (OVTI) finished fiscal 2014 on a solid note. The organization beat analysts' estimates handsomely while the viewpoint also blew past expectations. Known for supplying picture sensors to Apple (AAPL), Omnivision has done well. A glance at its prospects and item advancement will reveal that Omnivision can still scale more prominent heights.
Hot Small Cap Companies To Own In Right Now: Sify Technologies Limited(SIFY)
Sify Technologies Limited provides enterprise and consumer Internet services primarily in India. The company offers various corporate network/data services comprising e-commerce and network connectivity solutions, such as end-to-end services network, application, and security services; voice origination and termination services; co-location and managed hosting services; and system integration services for data centre build, hardware distribution, security solutions, and turnkey projects. It also provides application services, including SLEMS and Microsoft Exchange messaging platforms; I-test for online assessment and LiveWire, which enable management of training processes across the organization; document management system for the management of documents electronically; and Forum, a forward supply chain solution. In addition, the company operates e-Ports that offer browsing, chat, email, gaming, utility bill payment, travel ticketing, hotel booking, mobile recharge, Intern et telephony, and online share trading services; and portals, which provide news, views, reviews, interactions, and services in the areas of movies, sports, finance, food, videos, astrology, online games, shopping, and travel, as well as offers content offerings and broadband services. Further, it provides infrastructure management services, such as network management, datacenter and helpdesk outsourcing, desktop and storage outsourcing, IT security outsourcing, LAN and WAN outsourcing, database and telecom outsourcing, and application monitoring and management services to automotive, chemical, media, and financial enterprises; and virtualization design, integration, and deployment services for servers, storage, networks, and end user clients. Sify has approximately 1,278 e-Ports in 200 towns and cities; and serves 1,06,000 broadband subscribers through 1500 cable TV Operators. The company, formerly known as Sify Limited, was founded in 1995 and is based in Chennai, India. Advisors' Opinion:
- [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY). Utilities shares dropped by 0.11 percent in the US market today. - [By Jake L'Ecuyer]
Leading and Lagging Sectors
Technology stocks gained Tuesday, with Ku6 Media Co (NASDAQ: KUTV) leading advancers. Among leading tech stocks, gains came from Rubicon Technology (NASDAQ: RBCN), Bitauto Holdings (NYSE: BITA) and Sify Technologies (NASDAQ: SIFY).
Hot Small Cap Companies To Own In Right Now: OCZ Technology Group Inc(OCZ)
OCZ Technology Group, Inc. designs, develops, manufactures, and distributes computer components for computing devices and systems worldwide. It primarily offers solid state drives, flash memory storage, memory modules, thermal management solutions, AC/DC switching power supply units, and computer gaming solutions. The company?s products are used in industrial equipment and computer systems; computer and computer gaming solutions; mission critical servers and high end workstations; personal computer (PC) upgrades to extend the useable life of existing PCs; high performance computing and scientific computing; video and music editing; home theatre PCs and digital home convergence products; and digital photography and digital image manipulation computers. OCZ Technology Group, Inc. offers its products to retailers, on-line retailers, original equipment manufacturers, systems integrators, and distributors. The company was founded in 2002 and is headquartered in San Jose, Califo rnia.
Advisors' Opinion:- [By Rich Duprey]
The not-so-great and wonderful OCZ
There was no company-specific news that caused solid-state-drive maker OCZ Technology (NASDAQ: OCZ ) to fall almost 8% Wednesday. But an article that appeared on Seeking Alpha �questioning whether the company had six months or less to live before it filed for bankruptcy seemed to coincide with its fall.
Hot Small Cap Companies To Own In Right Now: EZchip Semiconductor Limited(EZCH)
EZchip, a fabless semiconductor company, engages in the development and marketing of Ethernet network processors for networking equipment. Its products include network processor chips, evaluation boards and network-processor based systems, and development software toolkits. The company offers network processors for use in forming the silicon core of networking equipment, such as switches and routers; and for voice, video and data integration in various applications. Its network processors are single-chip solutions, which enable its customers to design multi-port line cards, such as processing and classification engines, traffic managers, media access controllers, as well as a range of specialized hardware blocks that accelerate various functions. The company offers Evaluation systems which enable customers to test NPU-based systems; and toolkits that assist customers in creating, verifying, and implementing solutions based on its network processors. It provides a library f eaturing data plane code for a range of applications, which include Metro Ethernet protocols, Multi-Protocol Label Switching, IPv4 and IPv6 routing, Access Control Lists, GPON/EPON OLT functionality, Network Address Translation, and Server Load Balancing. The company sells its products directly, and through contract manufacturers and distributors to network equipment vendors. It markets its products in Israel, China, Hong Kong, the Far East, Canada, the United States, and Europe. The company was formerly known as LanOptics Ltd. and changed its name to EZchip Semiconductor Ltd. in July 2008. EZchip Semiconductor Ltd. was founded in 1989 and is based in Yokneam, Israel.
Advisors' Opinion:- [By Jake L'Ecuyer]
EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast. - [By Evan Niu, CFA]
What: Shares of EZchip (NASDAQ: EZCH ) have jumped today by as much as 13% after the company reported first-quarter earnings.
So what: Revenue in the first quarter totaled $15.3 million, topping the Street's forecast of $15.1 million. Non-GAAP net income per share came in at $0.23, which was right on target with expectations.
- [By Lisa Levin]
EZchip Semiconductor (NASDAQ: EZCH) shares climbed 5.80% to $23.53. The volume of EZchip Semiconductor shares traded was 635% higher than normal. EZchip Semiconductor's PEG ratio is 1.57.
Hot Small Cap Companies To Own In Right Now: Hot Topic Inc.(HOTT)
Hot Topic, Inc., together with its subsidiaries, operates as a mall- and Web-based specialty retailer in the United States. The company operates Hot Topic and Torrid store concepts, as well as an e-space music discovery concept, ShockHound. Its Hot Topic stores sell music/pop culture-licensed merchandise, including tee shirts, hats, posters, stickers, patches, postcards, books, novelty accessories, CDs, and DVDs; and music/pop culture-influenced merchandise comprising women?s and men?s apparel and accessories, such as woven and knit tops, skirts, pants, shorts, jackets, shoes, costume jewelry, body jewelry, sunglasses, cosmetics, leather accessories, and gift items for young men and women primarily between the ages of 12 and 22. The company?s Torrid stores sells casual and dressy jeans and pants, fashion and novelty tops, sweaters, skirts, jackets, dresses, hosiery, shoes, intimate apparel, and fashion accessories for various lifestyles for plus-size females primarily betw een the ages of 15 and 29. As of July 30, 2011, it operated 636 Hot Topic stores in 50 states, Puerto Rico, and Canada; 145 Torrid stores; and Internet stores, hottopic.com and torrid.com. The company was founded in 1988 and is headquartered in City of Industry, California.
Advisors' Opinion:- [By Marshall Hargrave]
In May True Religion (TRGL) announced a buyout offer from TowerBrook Capital for $826 million. Also in May, Rue21 decided to sell itself to Apax Partners for $2.2 billion. Before that, in March, Hot Topic (HOTT) announced that Sycamore Partners was buying out it out for $600 million.
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